Thank you for the quick response! The lower depreciable cost that I changed to in 2017 was from 80% building in 2015 to 30% building in 2017, not 70% building. 30% allocation for the building is what showed as the improvements/total land ratio on the property tax bill. I originally used 80/20 with building being the higher based on research and reading I had done online at the time when I was originally trying to figure this all out.
So is 30% what is actually allowable since I have property tax statements showing that ratio? Or is that not the case with a condo where the property tax statement shows the land as worth so much more than the building?
The advice I received yesterday was that the actual number used as the depreciable cost wouldn't be an the issue if it had stayed consistent throughout the time the property was rented. So if I had initially used the 30% improvements/70% land off the property tax bill in 2015 and kept it that way, it would have been fine. And if I had used the 80% improvements/20% land and kept it that way throughout, that would have been fine, since both can be rationalized. But I understood that the biggest issue was the fact that I changed what I was using as the depreciable cost two years into renting it, and am now using a different depreciable cost from what I initially submitted as the basis for depreciation on the 4562 in 2015, even though I can rationalize it.
If that is not a problem though, I do have the property tax documentation, and am happy to pay recapture on the extra I deducted in 2015 and 2016 that I shouldn't have deducted if 30% is the actual Basis.
